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HomeMy WebLinkAbout2026-06-01 City Council Summary MinutesCITY COUNCIL SUMMARY MINUTES Page 1 of 35 Regular Meeting June 01, 2026 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 p.m. Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely: None Absent: None Call to Order Mayor Veenker called the meeting to order. City Clerk Mahealani Ah Yun called the roll and noted all Councilmembers were present. Mayor Veenker noted that the meeting was the first of the Council's final 3 meetings before the summer recess. Assuming all scheduled business is completed, the Council would recess after its June 15 meeting and reconvene on August 10. Due to the 2026 calendar and the Labor Day holiday, the August meeting schedule was adjusted to August 10, August 17, and August 24 to avoid a 3-week gap between meetings. Special Orders of the Day 1. Proclamation Honoring June 2026 as LGBTQIA+ Pride Month Mayor Veenker recognized June 2026 as LGBTQIA+ Pride Month and highlighted the City's first Pride celebration, scheduled for June 7 at King Plaza. Recognition was given to the youth organizers and community partners who helped plan the event. An updated Pride flag had been displayed on the dais in recognition of Pride Month. Councilmember Lythcott-Haims read the proclamation titled "Honoring June 2026 as LGBTQIA+ Pride Month." Iris Blanchet, a youth organizer of the Pride celebration, expressed gratitude for the opportunity to help plan the event before leaving for college. It was conveyed that the event has been meaningful to many local youth and reflected a sense of inclusion, empathy, and support within the Palo Alto community. Mayor Veenker invited individuals who participated in planning the Pride event to join Council at the dais for a photo. SUMMARY MINUTES Page 2 of 35 City Council Meeting Summary Minutes: 06/01/2026 NO ACTION Agenda Changes, Additions and Deletions City Manager Ed Shikada reported that there were no agenda changes. Public Comment David C., speaking on behalf of Carbon Free Palo Alto, urged the City to reconsider the planned utility upgrades at Buena Vista Mobile Park. The commenter advocated for an all-electric approach, consistent with the original project concept, and expressed concerns that including gas infrastructure would increase long-term costs, create future financial burdens for residents, and undermine the City's health, safety, and greenhouse gas reduction goals. Support was expressed for using available grant funding to facilitate electrification and avoid future appliance replacement costs associated with anticipated air quality regulations. Council Member Questions, Comments and Announcements Councilmember Lauing congratulated Police Chief James Reifschneider on his recent swearing- in and noted the strong attendance and support shown at the ceremony. Councilmember Burt highlighted a recent Palo Alto Community Foundation event focused on youth mental health and well-being, noting participation by local youth and the announcement of a $25,000 matching grant to support the allcove Center, in addition to the organization's existing $100,000 contribution. Councilmember Burt requested that the meeting be adjourned in memory of Clarence B. Jones, who was a longtime Palo Alto resident, personal attorney and speechwriter for Martin Luther King Jr., and mentor to local youth. Mr. Jones's passing was described as a significant loss to the community. Councilmember Lythcott-Haims thanked City staff, youth organizers, and community partners for their efforts in planning the City's first Pride celebration, describing it as an all-hands-on- deck effort. Information was shared regarding the June 7 event at King Plaza, including performances, music, dance, drag, and community organization booths. Hamilton Avenue between Bryant Street and Ramona Street would be closed to allow the community to gather safely. Sponsors were acknowledged for their financial support of the event. Vice Mayor Stone highlighted the kickoff of the Thursday Live event series on California Avenue and reported strong attendance and community enthusiasm for the program. The next event will be on June 25. The commencement of the Newell Road Bridge replacement project was announced and described as the first step in the Reach 2 project. Reference was made to recent approval of the SAFER Bay project following several years of planning and collaboration. Vice Mayor Stone concluded by congratulating local graduates in advance of upcoming commencement ceremonies. SUMMARY MINUTES Page 3 of 35 City Council Meeting Summary Minutes: 06/01/2026 Mayor Veenker thanked Councilmember Lythcott-Haims for her contributions to planning the City's first Pride celebration. Mayor Veenker reported on a recent visit to Palo Alto's sister city, Linköping, Sweden, where opportunities were provided to share best practices and learn about local government initiatives. The city's civic corporation was highlighted, which supports housing and university housing efforts, and it was noted that Sustainability Manager Christine Luong participated in separate meetings focused on sustainability practices in Linköping. Study Session 2. Study Session on Flock Automated License Plate Recognition Technology; CEQA status – categorically exempt. Police Chief James Reifschneider introduced the study session on Flock Safety's Automated License Plate Recognition (ALPR) technology. Slides and sample ALPR images were shown. Chief Reifschneider explained that the system captures license plate information, vehicle characteristics, and location data from vehicles traveling on public roadways and compares that information against vehicles associated with criminal investigations, wanted persons, and missing or endangered individuals. It was emphasized that the system captures vehicle information rather than vehicle occupants or pedestrians and does not use facial recognition or collect personal identifying information. A screenshot of the search interface was displayed to illustrate vehicle- and location-based search capabilities. Additional slides were presented describing system uses and benefits. Chief Reifschneider stated that ALPR supports real-time alerts and criminal investigations by helping direct limited law enforcement resources, providing access to historical vehicle data, and facilitating regional information sharing among law enforcement agencies. Chief Reifschneider presented examples in which ALPR data contributed to investigations involving crimes and missing or endangered individuals. Slides were shown indicating that ALPR data had played an evidentiary role in at least 130 cases since 2024. Chief Reifschneider noted declines in residential burglaries, auto burglaries, and theft- related losses during that period and stated that ALPR technology has been a significant contributing factor. Additional slides addressed legal requirements, privacy protections, and the City's use of Flock ALPR technology. ALPR use is governed by the City's surveillance technology ordinance, a Council-approved surveillance use policy, and applicable state laws. Key safeguards include authorized-user requirements, audit logs, limited law enforcement data sharing, a 30-day data retention period, and compliance audits. Chief Reifschneider reviewed the former nationwide lookup feature, noting that a subsequent review found no searches by federal immigration agencies, no searches related to immigration or reproductive health enforcement, and no targeted searches of Palo Alto data by out-of-state or federal agencies. Actions taken by Flock Safety in response to concerns regarding the former nationwide lookup feature were described, including enhanced compliance measures, expanded audit tools, customer notifications, restrictions on data sharing, and disabling the feature for California agencies. Additional safeguards implemented by the PAPD included expanded audits, increased audit frequency, and publication of audit reports on the City's website. Slides were presented summarizing regional use of Flock ALPR technology, including SUMMARY MINUTES Page 4 of 35 City Council Meeting Summary Minutes: 06/01/2026 deployments throughout Santa Clara County and the Bay Area. It was reported that more than 300 California law enforcement agencies currently use the technology. Chief Reifschneider reviewed the City's contract with Flock Safety, including costs, grant funding, and termination provisions. An update was provided regarding the independent review of the City's ALPR program. Chief Reifschneider explained that the City engaged OIR Group to evaluate Flock Safety's policies and the PAPD's internal practices and reported that a final review is expected to return to the Council following the summer recess. Public Comment: 1. Austin M., speaking on behalf of Sherry S., Kathryn, Brian E., Dan M., Kelley, Siobhan S., and Anaya A., and representing Indivisible Palo Alto Plus and the Safety Over Surveillance coalition, expressed concerns regarding privacy implications associated with Flock ALPR technology. The commenter argued that ALPR systems enable the systematic collection and aggregation of location data that can reveal personal activities, associations, and travel patterns of individuals not suspected of criminal activity. Concerns were raised regarding Flock Safety's business model, the potential future use of aggregated data, and the possibility of expanded federal access to ALPR information. Support was expressed for reconsidering the City's relationship with Flock and prioritizing privacy protections. 2. Cara S., speaking on behalf of Linda F., Jesse S., Lisa B., Gabi K., and Stephanie C., identified herself as a longtime Palo Alto resident, municipal law attorney, co-leader of Indivisible Palo Alto Plus's Immigration Rights Action Team, and member of the Safety Over Surveillance Palo Alto coalition. The commenter thanked the Council for holding the study session and engaging an independent police auditor (IPA) and expressed appreciation for the PAPD's support of First Amendment activities. Concerns were raised regarding the City's participation in a broader surveillance network with Flock, including the effectiveness of existing safeguards, potential impacts on immigrant communities, expansion of Flock's capabilities, pending legal challenges alleging constitutional violations, and the lack of published studies demonstrating that the technology reduces crime or improves case closure rates. 3. Tim M., speaking on behalf of Victor S., Linda B., Steve W., and Magdalena C., identified himself as a member of the Silicon Valley Democratic Socialists of America and the Safety Over Surveillance coalition. The commenter urged the City to discontinue its use of Flock ALPR technology and questioned its effectiveness as a crime prevention tool, arguing that most collected data relates to individuals not involved in criminal activity and that license plate recognition systems can be circumvented by swapping license plates. Concerns were raised regarding privacy impacts, the potential for erroneous law enforcement actions, alleged Fourth Amendment implications, and Flock Safety's business model. The commenter advocated for investing in housing, healthcare, food assistance, and other community services as alternatives for improving public safety. SUMMARY MINUTES Page 5 of 35 City Council Meeting Summary Minutes: 06/01/2026 4. Josh W., speaking on behalf of Chris C., Chris B., Michael R., Eddie G., and Eric B., identified himself as Vice President of the Palo Alto Police Officers' Association and expressed support for the continued use of Flock ALPR technology. It was stated that the system assists officers in locating stolen vehicles, identifying suspects, investigating crimes, and finding missing persons, particularly when suspects travel into Palo Alto from other jurisdictions. Reference was made to 139 patrol-level cases between January 2024 and February 2026 in which ALPR technology provided public safety benefits, as well as a reported significant reduction in retail losses at Stanford Shopping Center. The commenter characterized ALPR as an important investigative tool that complements traditional police work and emphasized the importance of maintaining safeguards related to policy, training, transparency, and accountability while continuing to utilize effective crime-fighting technology. 5. Charlie W., speaking on behalf of the Palo Alto Chamber of Commerce, expressed support for the continued use of Flock ALPR technology. The commenter stated that the system has improved public safety and enforcement efforts, citing examples involving a stolen vehicle connected to an armed carjacking, organized retail theft investigations, and Downtown restaurant burglaries. Reference was made to statistics indicating that ALPR technology contributed to 64 incidents and 24 arrests in 2025. 6. Charles S. expressed concerns regarding the privacy implications of the City's ALPR camera network and the sharing of collected data with other agencies. The commenter stated that the technology could discourage participation in public activities and urged the City to terminate its contract with Flock and remove or disable the cameras. 7. Fritz K. identified himself as a longtime Palo Alto resident and an attorney who reviews software-as-a-service contracts. The commenter opined that concerns regarding Flock Safety relate less to the City's policies and contractual provisions and more to the company's own practices and incentives. Questions were raised regarding whether sufficient oversight exists to evaluate Flock's actions and the commenter expressed skepticism about the company's commitment to privacy protections. 8. Emily B., a resident of Palo Alto, stated that the primary justification for ALPR technology is improved public safety but argued that available research does not demonstrate significant overall crime reduction benefits. The commenter questioned whether the technology meaningfully addresses the types of crimes most commonly experienced in Palo Alto. 9. Jim expressed opposition to the City's use of ALPR technology, arguing that it infringes on Fourth Amendment privacy rights. The commenter distinguished ALPR data collection from the voluntary use of cell phones, stating that individuals have greater control over personal data associated with cell phones. Concerns were raised regarding the collection of ALPR data without consent and the commenter urged the City to discontinue use of the technology. SUMMARY MINUTES Page 6 of 35 City Council Meeting Summary Minutes: 06/01/2026 10. Mariya stated that her experiences growing up in the Soviet Union shaped her concerns about government surveillance. The commenter believed that ALPR technology creates a database capable of revealing individuals' movements, associations, and activities and contrasted that approach with traditional policing methods that focus on specific suspects. Concerns were raised regarding impacts on privacy, freedom of association, and the potential future use of collected data by government entities. 11. Matt S. urged the City to terminate its contract with Flock Safety, arguing that the company cannot be trusted and that examples of the technology's effectiveness were anecdotal rather than supported by statistical evidence. The commenter expressed concern that outside agencies had conducted searches involving Palo Alto data despite assurances regarding safeguards and contended that unsuccessful or undocumented searches still raised privacy and accountability concerns. Reference was made to potential federal access to ALPR data and the need for stronger protections against unauthorized use. 12. Melissa D., founder of Indivisible Palo Alto Plus, expressed opposition to the City's continued use of Flock ALPR technology. The commenter argued that vehicle data can be linked to individuals and raised concerns regarding the use of ALPR systems in connection with immigration enforcement, reproductive healthcare investigations, and monitoring of protest activity. While expressing trust in local law enforcement, the commenter voiced concerns about how surveillance infrastructure could be used in the future and urged the City to terminate its contract with Flock. 13. Tricia D., a longtime Palo Alto resident, expressed opposition to the City's use of Flock ALPR technology due to concerns about aggregated license plate data being combined with other databases. The commenter raised concerns regarding potential misuse of large-scale data collection by government entities and argued that future uses of the technology could discourage civic participation and threaten individual privacy rights. The Council was urged to discontinue the City's relationship with Flock. 14. David P. thanked Police Chief Reifschneider and Palo Alto police officers for their service. Drawing on his experience working in a mental health clinic in San Francisco, the commenter stated that attendance by Latino community members had declined significantly due to concerns about federal immigration enforcement. The commenter stated that even with policies prohibiting the sharing of information with ICE, many community members do not trust the federal government and argued that the resulting fear harms the community. 15. Leonor D. expressed concerns regarding the presence of Flock ALPR cameras in the community and the potential sharing of collected data with federal agencies. The commenter stated that the technology has contributed to fear within the community and argued that sharing location data without consent infringes on constitutional rights and the rule of law. Reference was made to participation in peaceful demonstrations SUMMARY MINUTES Page 7 of 35 City Council Meeting Summary Minutes: 06/01/2026 and other community gatherings and appreciation was expressed for support shown by Councilmembers and other City officials at those events. The commenter urged the City to discontinue its relationship with Flock. 16. Hilary S., a resident of Palo Alto, described organizing small groups to participate in public demonstrations and expressed concerns about the presence of surveillance cameras in public spaces. The commenter stated that the technology contributes to feelings of unease and referenced prior interactions with law enforcement that affected her perception of policing and surveillance. 17. Pierre L. expressed support for concerns raised by previous speakers and discussed Flock Safety's business model and financial incentives. The commenter referenced the company's valuation, revenues, camera network, and potential opportunities for future federal contracts, arguing that the company benefits from the expansion of large-scale surveillance systems. 18. Emma B. expressed concerns regarding Flock Safety's handling of data and stated that the company has acted in ways that are inconsistent with community expectations and policies. While acknowledging efforts to address concerns, the commenter argued that existing safeguards have proven inadequate and raised concerns regarding oversight, misuse of data, and the company's ability to responsibly manage sensitive information. 19. KBT expressed concerns regarding the use of AI in ALPR technology and argued that AI- based systems can produce errors and inaccurate results. The commenter questioned reliance on automated technology for law enforcement purposes and urged the City to terminate its contract with Flock. 20. Ariel questioned comparisons between ALPR technology and traditional police observation, arguing that the scale and permanence of camera-based surveillance create different risks. The commenter expressed concern that the presence of ALPR infrastructure could enable misuse in the future regardless of current policies or practices and stated disappointment with the City's use of surveillance technology. 21. Hansel A., a Santa Clara resident, sociologist, migrant from Honduras, and former law enforcement officer, referenced a letter submitted to the Council and believed that research regarding the effectiveness of ALPR technology in reducing crime has produced mixed results. The commenter stated that crime prevention does not require large-scale data collection and referenced concerns regarding conditions in federal immigration detention facilities. The commenter clarified that no claim was being made that any specific technology was responsible for any specific harm. 22. Hamilton H. argued that the primary privacy concern associated with ALPR technology is the retention and searchability of historical vehicle location data rather than real-time alerts. The commenter suggested several policy alternatives, including limiting data sharing with outside agencies, reducing data retention periods, and evaluating SUMMARY MINUTES Page 8 of 35 City Council Meeting Summary Minutes: 06/01/2026 alternative vendors with stronger privacy protections. The commenter characterized the issue as a policy tradeoff between regional law enforcement collaboration and enhanced privacy protections for residents. 23. Herb B. questioned whether ALPR data could be used to identify vehicle owners and track individuals over time despite statements that personal information is not collected by the system. The commenter expressed concerns regarding the retention and aggregation of location data and argued that long-term monitoring of individuals' activities and associations could implicate First Amendment rights. 24. Yudy D., a Palo Alto resident, thanked Police Chief Reifschneider for his analysis and expressed support for a balanced approach to the use of ALPR technology. The commenter stated that the technology has contributed to recovering stolen vehicles, locating missing persons, and assisting with criminal investigations while acknowledging concerns regarding privacy, oversight, and accountability. Support was expressed for continued use of the technology with strong safeguards, transparency, regular reviews, and ongoing evaluation of policies and outcomes. 25. Winter D. (Zoom) expressed opposition to surveillance technologies and cited historical examples of alleged government surveillance abuses. The commenter referenced personal experiences and concerns regarding monitoring of constitutionally protected activities and argued that surveillance systems are inherently vulnerable to misuse. Concerns were raised regarding Flock Safety's handling of issues related to data sharing and notification practices and the commenter urged the City not to continue relying on the technology. 26. Raadhi (Zoom), a Bay Area resident, urged the City to terminate its contract with Flock Safety. The commenter expressed concerns regarding potential access to ALPR data through legal processes and questioned the reliability of information provided by the company. The commenter encouraged the City to independently evaluate evidence regarding the effectiveness of ALPR technology and argued that the system does not provide meaningful public safety benefits. 27. Batman (Zoom) expressed opposition to the City's continued use of Flock ALPR technology and raised concerns regarding potential access to ALPR data by federal immigration enforcement agencies. The commenter questioned the effectiveness of existing oversight and audit mechanisms and believed that the technology poses risks to community members. The commenter urged the City to terminate its relationship with Flock. Mayor Veenker thanked the public speakers for their comments and returned the discussion to the Council. It was noted that the item was a study session intended to provide an opportunity for questions, discussion, and feedback and that no formal action would be taken at this meeting. The item will likely return to the Council in a couple of months. SUMMARY MINUTES Page 9 of 35 City Council Meeting Summary Minutes: 06/01/2026 Councilmember Reckdahl asked how the City could be assured that Flock would not bypass Council-imposed restrictions in the future as occurred with the nationwide lookup feature. Chief Reifschneider responded that the PAPD has expanded the scope and frequency of its audits and would now be able to detect a similar issue within 30 days. It was stated that the Department is better positioned to identify future compliance concerns. Based on discussions with Flock leadership, it is believed the prior issue resulted from inadequate oversight rather than intentional misconduct. Councilmember Reckdahl questioned what information is required for outside law enforcement agencies to access Palo Alto ALPR data. Chief Reifschneider explained that agencies operating under a data-sharing MOU have the same search capabilities as Palo Alto officers and can search using vehicle characteristics and partial license plate information in connection with criminal investigations. Councilmember Reckdahl questioned the accuracy of ALPR technology and referenced concerns regarding false detections. Chief Reifschneider stated that the system is reported to be more than 99 percent accurate and emphasized that officers are required to visually verify a license plate before initiating a vehicle stop based on an ALPR alert. It was explained that incidents cited by public speakers involved camera and human error, noting that officers in those cases had failed to perform the required verification. Councilmember Reckdahl questioned how Flock's nationwide lookup feature was implemented despite California laws restricting such data sharing. Chief Reifschneider responded that, based on information provided by Flock to him, the company was growing rapidly and had focused more heavily on product development and sales than on state-by-state legal compliance. It was Chief Reifschneider's understanding that Flock has since increased its emphasis on legal compliance and oversight. Councilmember Reckdahl sought clarification regarding safeguards to prevent misuse of ALPR technology by law enforcement personnel. Chief Reifschneider explained that the PAPD conducts monthly audits of officer searches and noted that unauthorized use of ALPR data is subject to significant administrative and criminal penalties, which could result in termination and criminal prosecution under state law. Councilmember Lythcott-Haims emphasized that her concerns were not directed at PAPD and acknowledged the value of ALPR technology in assisting criminal investigations and locating missing persons. Councilmember Lythcott-Haims opined that the central issue is whether those benefits outweigh privacy concerns and the potential for misuse of data by vendors or government agencies. Concerns were raised regarding Flock's prior violation of California law, the delay in the City's awareness of the nationwide lookup feature, the adequacy of communication and oversight, and the company's broader role in developing large-scale surveillance systems. Councilmember Lythcott-Haims stated that she is particularly concerned about the potential impact of such systems on privacy rights and civil liberties and questioned whether continued participation could contribute to a nationwide surveillance network. SUMMARY MINUTES Page 10 of 35 City Council Meeting Summary Minutes: 06/01/2026 Vice Mayor Stone inquired whether PAPD has tracked measurable outcomes such as clearance rates, recovery rates, suspect identification rates, or response times to evaluate the effectiveness of ALPR technology. Chief Reifschneider responded that those statistics were not available and acknowledged the difficulty of attributing overall crime trends to a single factor. It was indicated that the PAPD instead relies on specific case examples demonstrating instances in which Flock technology directly contributed to solving crimes, including serious violent offenses. Vice Mayor Stone asked what operational capabilities would be lost if Palo Alto discontinued its use of Flock ALPR technology and whether alternative resources would be needed to maintain current service levels. Chief Reifschneider responded that ALPR technology plays an important role in complex, multijurisdictional investigations by helping law enforcement identify connections between crimes occurring in different jurisdictions. A residential burglary investigation was cited, in which ALPR data helped link suspects to dozens of burglaries across multiple counties. Chief Reifschneider further noted the value of real-time alerts involving stolen vehicles, which can assist in recovering those vehicles and help deter additional criminal activity. Vice Mayor Stone questioned whether the City retains control over the deployment of any future Flock features beyond the ALPR capabilities currently authorized. Chief Reifschneider confirmed that implementation of any new surveillance technology would require Council approval through the City's surveillance technology process. Flock's Falcon cameras used by Palo Alto were distinguished from Flock's Condor cameras, which are traditional surveillance cameras with AI capabilities. It was reiterated that deployment of those technologies would require Council direction. Councilmember Lu inquired whether the scope of the IPA's review could include evaluating alternatives such as limiting data sharing with outside agencies and reducing ALPR data retention periods. Chief Reifschneider responded that the audit scope could be modified before completion and stated that he expects the report to include an assessment of best practices related to data retention and similar policy considerations. Councilmember Lu expressed interest in evaluating the potential impacts of such changes on data sharing, regional collaboration, and the effectiveness of the ALPR program and suggested that additional analysis would be valuable. Councilmember Lu expressed interest in developing additional metrics to evaluate the effectiveness of ALPR technology and better understand the tradeoffs between public safety benefits and privacy concerns. Councilmember Lu suggested reviewing cases in which Flock data contributed to investigations to assess the extent of its impact and stated that such analysis could help inform future policy decisions. Appreciation was expressed for the PAPD's auditing and transparency practices and interest was expressed in future discussions regarding regional collaboration and potential policy improvements. SUMMARY MINUTES Page 11 of 35 City Council Meeting Summary Minutes: 06/01/2026 Councilmember Lauing commented on examples presented by the Police Department involving missing and endangered persons and stated that the technology appeared to provide identifiable public safety benefits. Councilmember Lauing inquired what information could have been accessed through the nationwide lookup feature while Palo Alto data was included in the broader network. Chief Reifschneider explained that the feature required a complete license plate number and returned photographs associated with that plate, along with the date, time, and location of each capture. It was stated that the Flock database does not contain personal identifying information and that any additional information about a vehicle owner would require access to separate law enforcement databases. Councilmember Lauing stated that the explanation was helpful and reiterated concerns regarding how such information could be used by federal immigration enforcement agencies. Councilmember Lauing questioned what changes Flock Safety has made following the discovery of the nationwide lookup feature and expressed concerns regarding the company's conduct, oversight, and the lack of changes in company leadership. Chief Reifschneider responded that Flock leadership has acknowledged a greater responsibility to ensure customers can use the product in compliance with applicable laws. It was stated that the company appears to have increased its focus on state-specific legal requirements and compliance. Councilmember Burt thanked staff and members of the public for their input and stated that several questions regarding the security, effectiveness, and oversight of the ALPR program could potentially be addressed through the IPA's review. Concerns were expressed regarding Flock leadership's response to criticism and whether the company could be trusted to responsibly manage the technology. Councilmember Burt then requested additional information regarding the scope of the planned independent audit and emphasized the importance of Council oversight. Chief Reifschneider explained that staff is working with OIR Group to develop the scope of work and noted that a contract extension will be brought forward to allow the review to proceed. City Manager Shikada stated that staff would evaluate opportunities for Council to receive additional information regarding the audit scope before the review is finalized. Councilmember Burt reiterated his desire for Council to review the scope before the audit begins and City Manager Shikada agreed to work with OIR Group to determine how best to accomplish that. Mayor Veenker acknowledged the benefits and concerns associated with ALPR technology and stated that the issue requires further evaluation. Concerns were expressed regarding trust in government institutions, technology companies, and AI, while recognizing the public safety benefits described by the Police Department. Questions were raised regarding the information required to conduct a Flock search and the process used to verify a legitimate law enforcement purpose during audits. Chief Reifschneider explained that searches require entry of a standardized FBI NIBRS offense type, a case number, and a reason for the search. Monthly audits compare search activity against case records to verify a legitimate connection and network audits verify compliance with required search fields and data-sharing agreements. Interest was expressed in exploring whether future MOUs could require reciprocal auditing practices by participating agencies. Chief Reifschneider responded that the City could revise its SUMMARY MINUTES Page 12 of 35 City Council Meeting Summary Minutes: 06/01/2026 MOUs and noted that Palo Alto has taken a leading role in developing such agreements with Flock users. Mayor Veenker inquired how ALPR searches are categorized in situations involving missing or endangered individuals rather than criminal investigations. Chief Reifschneider explained that the available offense types include categories such as missing and endangered persons and suicidal subjects. Mayor Veenker inquired where ALPR data is stored and whether the City's 30-day data retention policy is independently verified. Chief Reifschneider explained that the data is stored in encrypted cloud storage provided by Flock and that the PAPD does not maintain on-site servers for the system. Chief Reifschneider stated that additional information regarding data deletion verification could be provided by City IT staff. Mayor Veenker suggested that the issue could be included within the scope of the independent audit. Mayor Veenker expressed interest in understanding the consequences faced by Flock Safety in connection with the nationwide data-sharing issue and requested additional information regarding potential legal, contractual, and financial implications. Mayor Veenker expressed interest in addressing City costs and potential contractual penalties for future violations and indicated a desire to discuss those options when the matter returns to Council. Councilmember Reckdahl inquired whether a data-sharing network limited to Santa Clara County would provide sufficient investigative value. Chief Reifschneider responded that any level of data sharing would be beneficial but stated that criminal activity frequently crosses county boundaries, which makes broader regional participation valuable. Some investigations involve offenders operating in multiple Bay Area counties and it was explained that limiting data sharing to a smaller geographic area would reduce the effectiveness of the system. Chief Reifschneider added that the PAPD is not committed to Flock as a vendor and would be open to considering alternative providers if comparable options become available. NO ACTION Consent Calendar Public Comment: 1. Emily R. spoke on behalf of Silicon Valley At Home regarding Item 4 and referenced a joint letter submitted with Palo Alto Forward. The commenter urged the Council not to indefinitely defer expansion of the Rental Registry Program or future consideration of a rent stabilization ordinance and instead establish conditions that would trigger renewed Council review. Support was expressed for the City's tenant protection efforts and data was cited indicating that some households continue to experience significant rent increases. The commenter stated that rent stabilization measures could provide additional protections for vulnerable renters and encouraged the City to continue its leadership on tenant protection policies. SUMMARY MINUTES Page 13 of 35 City Council Meeting Summary Minutes: 06/01/2026 2. Anil B., representing the California Apartment Association, thanked staff for its work on Item 4 and expressed support for the recommendation to discontinue further consideration of rent stabilization. The commenter stated that additional rent restrictions can make it more difficult for property owners to maintain older rental properties and believed that state tenant protection laws under AB 1482 provide appropriate safeguards through rent caps and just-cause eviction requirements. Support was voiced for continuing to rely on the existing State framework. 3. Tim M. expressed support for retaining the Rental Registry Program and continuing consideration of rent stabilization measures. The commenter stated that housing policies should prioritize the needs of residents and argued that a rental registry provides useful information. Support was expressed for measures intended to improve housing affordability and tenant stability. Mayor Veenker requested that Item 4 be removed from the Consent Calendar for separate consideration. Vice Mayor Stone, Councilmember Lu, Councilmember Burt, and Councilmember Lythcott-Haims concurred. MOTION: Vice Mayor Stone moved, seconded by Councilmember Reckdahl, to approve Agenda Item Numbers 3, 5-14 and to pull off the Consent Calendar Agenda Item Number 4. MOTION PASSED ITEMS 3, 5-14: 7-0 3. Approval of Minutes from May 11 and May 18, 2026 Meeting 4. Recommendation from Policy and Services Committee to City Council to Indefinitely Defer Both Expansion of the Rental Registry Program to Properties with Two or Fewer Units and Further Consideration of a Possible Rent Stabilization Ordinance. CEQA: Exempt pursuant to CEQA Guidelines Section 15061(b)(3). Removed off Consent Calendar and heard June 1, 2026. 5. Approval of and Authorization to execute Purchase Orders with Jensen Precast and Oldcastle Infrastructure for the Purchase of Electric Utility Underground Boxes Not to Exceed $800,000 per year, for a Total Aggregate Not-to-Exceed Amount of $4,000,000 for Five Years; CEQA Status – Not a Project. 6. Approval of Purchase Order C27197327 with Carahsoft Technology Corporation to Procure DocuSign eSignature Software, Utilizing OMNIA cooperative contract no. R240303 for a One-Year Term for a Total Not-To-Exceed Amount of $145,180; CEQA Status - Not a Project 7. Approval of an Extension to Building Permit 18000-00536 for 429 University Ave; CEQA status – Mitigated Negative Declaration (ENV20718). SUMMARY MINUTES Page 14 of 35 City Council Meeting Summary Minutes: 06/01/2026 8. Approval of Professional Services Contracts with Concourse Tech Inc., Contract No. C26195689, and Prospect Silicon Valley, Contract No. C26195690, to Support Commercial Efficiency and Electrification Programs for a Term of Three (3) Years for a Total Combined Not to Exceed Amount of $898,500; CEQA Status – Not a Project 9. Approval of Professional Services Contract Number C27197243 with Euna Solutions, Utilizing a TIPS Cooperative Contract, to Modernize the City’s Budget Development and Publishing Software for a Five-Year Term, with Two One-Year Optional Extensions for a Total Not-to-Exceed Amount of $1,322,230. CEQA Status - Not a project. 10. Approve Amendment No. 1 to Contract C21180768 with Public Safety Innovation, Inc. to Extend Term by One Year and Update the Schedule of Rates at No Additional Not-to- Exceed Financial Authority; CEQA Status - Not a project 11. Approval of Contract Amendment No. 3 to Contract Number C20176367 with LAZ Karp Associates, LLC to Increase the Compensation by $713,311 for a revised total not-to- exceed $3,035,596 and Extend the Term by 18 Months for the Parking Enforcement Program for Residential Preferential Parking Districts; CEQA Status - Not a Project. 12. Approval of Amendment No. 1 to 14 Professional Services Contracts for GIS On-Call Services: C26193271A with Lynx Technologies Inc, C26193271B with Seven Tablets Inc, C26193271C with iSpatial Techno Solutions Inc, C26193271D with Geodesy, C26193271E with UDC, C26193271F with NV5 Geospatial Inc, C26193271G with SSP Innovations, C26193271H with Timmons Group, C26193271I with Infojini Inc, C26193271J with Sybyte Technologies Inc, C26193271K with 360S2G, C26193271L with Enterprise Maps, C26193271M with Farallon Geographics, C26193271N with Arini Geographics, to increase the Not-to-Exceed Compensation by $2,000,000 and Extend the Term for One Year; CEQA Status – Not a Project. 13. Approval of Contract Change Order No. 2 in the Amount of $1,000,000 to Contract No. C23186274 with Monterey Mechanical Company for On-Call Emergency and Critical Construction Services at the Regional Water Quality Control Plant, for a Revised Not-To- Exceed Amount of $4,000,000, and Approval of Contract Amendment No. 1 to Contract No. S24190553 with Carollo Engineers Inc. for On-call Engineering Services at the Regional Water Quality Control Plant to Increase Compensation by $995,000 for a Revised Total Not-to-Exceed Amount of $1,250,000, and to Extend the Contract Term Through December 31, 2028; CEQA Status – Exempt Under CEQA Guidelines Section 15301 14. Adoption of a Resolution Amending Utilities Rules and Regulations Numbers 02 (Definitions and Abbreviations), 03 (Description of Utility Services), 04 (Application for Service), 05 (Service Contracts), 09 (Disconnection, Termination and Restoration of Service), 10 (Meter Reading), 11 (Billing, Adjustments and Payment of Bills), 18 (Utility Service and Facilities on Customer Premises, 20 (Special Electric Utility Regulations), 21 SUMMARY MINUTES Page 15 of 35 City Council Meeting Summary Minutes: 06/01/2026 (Special Water Utility Regulations), 22 (Special Gas Utility Regulations), 23 (Special Wastewater Utility Regulations), and Utility Rate Schedule C-4 (Residential Rate Assistance Program), and Repealing Rule 15 (Metering Equipment); CEQA Status – Not a Project Consent Calendar Item Pulled for Discussion 4. Recommendation from Policy and Services Committee to City Council to Indefinitely Defer Both Expansion of the Rental Registry Program to Properties with Two or Fewer Units and Further Consideration of a Possible Rent Stabilization Ordinance. CEQA: Exempt pursuant to CEQA Guidelines Section 15061(b)(3). Mayor Veenker proposed a brief discussion of Item 4 to determine whether the matter could be resolved without a more extensive hearing. City Manager Shikada noted that the discussion would serve as an opportunity to test the Council's new procedure for considering whether a pulled consent item could be addressed efficiently. Mayor Veenker expressed appreciation for the work completed by staff and the P&S Committee and stated support for delaying further consideration of the item. Concerns were raised regarding an indefinite deferral and interest was shown in establishing conditions that could trigger future consideration of rent stabilization policies. Mayor Veenker suggested replacing the indefinite deferral with a 12-month deferral or allowing the matter to return sooner at Council direction. Vice Mayor Stone presented a proposed motion to replace the recommended indefinite deferral with a 1-year deferral and to return the item to the P&S Committee for review and consideration at that time. Vice Mayor Stone noted that the Committee had not discussed potential criteria that could trigger future reconsideration of the issue, apologized, and expressed support for revisiting the matter next year. Councilmember Lythcott-Haims agreed that the P&S Committee had not discussed criteria for future reconsideration of the item and characterized that omission as an oversight. Support was expressed for the proposed motion. Councilmember Lu was not strongly opposed to expanding the Rental Registry Program to 1-2 unit properties and expressed support for using rental data to improve market transparency and inform policy decisions. Councilmember Lu questioned whether additional information regarding rent increases and compliance with existing tenant protection laws could be useful and suggested that those topics be considered by the P&S Committee when the item returns for review. Vice Mayor Stone agreed that those issues could be considered during a future Committee discussion. Mayor Veenker added that the Council could revisit the issue during its annual priority-setting process if circumstances warrant earlier consideration and stated that the proposed 1-year deferral would provide an opportunity for future review. SUMMARY MINUTES Page 16 of 35 City Council Meeting Summary Minutes: 06/01/2026 Councilmember Burt questioned whether the motion language accurately reflected the Council's intent, noting that the displayed wording continued to reference an indefinite deferral. City Manager Shikada and City Clerk Ah Yun clarified that the language had not yet been updated to incorporate the proposed amendment. Councilmembers and staff then worked together to refine the motion language. Councilmember Lu suggested that future review of the Rental Registry Program include consideration of additional data transparency measures and enhancements to the public dashboard. Vice Mayor Stone expressed general support for those concepts but noted concerns regarding staff resources and workload. Planning and Development Services Director Jonathan Lait explained that staff is still developing the rental registry dashboard and stated that more detailed rental data could be discussed when the item returns to the P&S Committee. Councilmember Lu indicated a desire to have those topics included in future discussion to provide additional context for policy consideration. MOTION: Vice Mayor Stone moved, seconded by Councilmember Lauing, to approve the staff recommendation, as amended, by deferring for up to one year the expansion of the Rental Registry Program and consideration of a local rent stabilization policy, and directing staff to return to the Policy and Services Committee within one year for discussion of further analysis, policy development, or preparation of a draft ordinance related to a local rent stabilization policy, as well as consideration of a Rental Registry Dashboard to enhance transparency and public access to rental housing data. MOTION PASSED: 7-0 City Manager Comments City Manager Ed Shikada announced several upcoming community events, including the ribbon cutting for the Downtown teen center and La Comida on June 3, the annual Citywide Yard Sale on June 7 (link), and the inaugural Palo Alto Pride event at King Plaza on June 8. An update was provided regarding construction along Embarcadero Road between Emerson and High Streets, which is scheduled to begin June 8 and continue through mid-August as part of Council-directed safety improvements. City Manager Shikada then reviewed upcoming Council agenda items, including June 8 with the Urban Water Management Plan, Cubberley actions, and the San Antonio Corridor Plan; and June 15 with budget and rates adoption and the Bicycle and Pedestrian Transportation Plan. A reminder was provided that August Council meetings will be held on August 10, 17, and 24 and it was noted that the Crescent Park Traffic Calming item is currently scheduled for the first meeting in August. [Council took a 21-minute break] Action Items 15. Adoption of the Community Development Block Grant (CDBG) Fiscal Year (FY) 2026- 2027 Annual Action Plan; and Approving Use of CDBG Funds for FY 2026-2027 as SUMMARY MINUTES Page 17 of 35 City Council Meeting Summary Minutes: 06/01/2026 Recommended by the Human Relations Commission. CEQA Status: Exempt under CEQA Guidelines Section 15378(b)(4). Planning and Development Services Director Jonathan Lait noted that the staff report was included in the agenda packet and indicated that staff was available to answer questions. It was suggested proceeding directly to public comments and Council questions. Mayor Veenker expressed support for waiving the staff presentation absent any objections from the Council. Public Comment: 1. Melanie F., representing Upwards, thanked the City for supporting in-home childcare providers through the Boost program and described the recent expansion of the program to include Boost and Learn, which adds an online learning and resource platform. The commenter reported that, with CDBG funding, the program partnered with 11 local childcare providers, created 3 teaching assistant positions, and helped participants increase revenue by approximately 40 percent. Support was expressed for the Human Relations Commission's funding recommendation, which would allow the program to continue serving local providers and families. The commenter stated that the program helps improve the financial sustainability of childcare businesses while expanding access to licensed childcare and indicated that future funding needs may be reduced if the current request is approved. Vice Mayor Stone moved approval of the staff and Human Relations Commission recommendations. It was noted that CDBG funding allocations are governed by established program requirements and confidence was voiced for the review conducted by staff and the Human Relations Commission. Appreciation was expressed for the work completed. Councilmember Burt seconded the motion. Councilmember Lythcott-Haims asked whether CDBG Grant funding could be used to support safe parking programs given the City's ongoing efforts to address vehicle habitation. Senior Housing Specialist Leif Christiansen explained that safe parking programs could potentially be funded through the public services category, which is capped at 15 percent of the City's allocation and is highly competitive. It was noted that CDBG funding currently supports services for unhoused individuals through programs such as the Opportunity Center and that most CDBG funding is directed toward housing rehabilitation and infrastructure projects under federal program requirements. In response to a question regarding eligibility under the public facilities and improvements category, Housing Specialist Christiansen stated that safe parking programs would not typically qualify under that category but noted that future proposals could be evaluated based on their specific details. Councilmember Reckdahl noted that several organizations receiving funding recommendations were new applicants and asked how they became involved in the program. Housing Specialist SUMMARY MINUTES Page 18 of 35 City Council Meeting Summary Minutes: 06/01/2026 Christiansen explained that staff expanded outreach efforts and encouraged interested nonprofits to apply. It was noted that some organizations contacted the City directly and that partnerships with existing service providers have helped increase awareness of the CDBG program. Interest was expressed in continuing to expand outreach and participation in future funding cycles. Councilmember Reckdahl asked how capital improvement projects are selected for CDBG funding and whether future projects are identified in advance. Housing Specialist Christiansen explained that staff conducts outreach to potential applicants and evaluates eligible project proposals as they are received. Capital project applications were limited this year, which resulted in additional funding being directed toward ADA curb ramp improvements. An update was provided on the Homekey recreation project, which was delayed due to environmental review requirements and is expected to move forward in the upcoming fiscal year. Staff continues to work with existing and prospective partners to identify future eligible projects. Mayor Veenker asked why several new applicants received funding recommendations that were substantially lower than the amounts requested. Housing Specialist Christiansen explained that public service funding is limited by a federal cap and that total funding requests routinely exceed available resources. The Human Relations Commission elected to distribute funding among a larger number of organizations rather than concentrate funding among a smaller number of recipients. It was conveyed that applicants are asked whether their programs can continue operating if they receive less than their requested amount and that many organizations rely on funding from multiple sources to support their services. Mayor Veenker asked whether the recommended ADA curb ramp funding was tied to a specific location and questioned whether such improvements would otherwise be funded through the City's capital program. Housing Specialist Christiansen explained that Public Works is identifying locations through its planning process and that the funding could be used for ADA curb ramp improvements throughout the City. It was stated that CDBG funds are often used to supplement such projects and that unallocated federal funds must be spent or returned. Interest was expressed in expanding outreach to encourage additional applications for eligible housing and community development projects in future funding cycles. MOTION: Vice Mayor Stone moved, seconded by Councilmember Burt, to: 1. Adopt the draft Fiscal Year (FY) 2026-2027 Annual Action Plan (Attachment A) and the associated resolution (Attachment B) allocating Community Development Block Grant (CDBG) funding for FY 2026-2027; 2. Authorize the City Manager to execute the FY 2026-2027 CDBG application to fund the FY 2026-2027 Annual Action Plan (AAP) and any other necessary documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds; SUMMARY MINUTES Page 19 of 35 City Council Meeting Summary Minutes: 06/01/2026 3. Authorize staff to submit the FY 2026-2027 AAP to U.S. Department of Housing and Urban Development (HUD) by the extended deadline of August 16, 2026. MOTION PASSED: 7-0 16. Outdoor Activation Standards, Pre-Approved Parklet Plans and Public Space Design Concept for the Car-Free Portion of California Avenue; and FIRST READ: Adopt an Ordinance Amending the Sign Code to Streamline Permitting of Signs in Conjunction with a Parklet; CEQA Status - Exempt pursuant to CEQA Guidelines Section 15303. Economic Development Manager Alex Andrade introduced the proposed outdoor activation standards and pre-approved parklet plans for California Avenue. Manager Andrade noted that the proposal advances implementation of the City's Economic Development Strategy by supporting outdoor dining and activation of commercial districts and has previously been reviewed by the ARB. Manager Andrade stated that, if approved, implementation funding would be incorporated into a Public Works contract scheduled for Council consideration on June 15. Assistant to the City Manager Bruce Fukuji stated that the proposal represents the next step in implementing the Council's vision for California Avenue and highlighted previous efforts, including the permanent street closure, bicycle improvements, signage and branding initiatives, and development of street design concepts. Staff worked closely with the ARB, which unanimously supported the outdoor activation standards and pre-approved parklet plans in April. Indicators of increased economic activity on California Avenue were highlighted, including reduced commercial vacancy rates and growth in sales tax and food sales revenue. Food and beverage businesses account for a significant share of California Avenue sales tax revenue. Outdoor dining, gathering spaces, and street activation were identified as important contributors to the district's economic vitality. The proposed outdoor activation program was developed through stakeholder engagement, review of comparable projects, and collaboration with the ARB. The standards are intended to support economic vitality by expanding opportunities for outdoor commercial activity, streamlining permitting, and providing a range of investment options for businesses. The standards would allow outdoor seating capacity comparable to or greater than existing conditions and could accommodate pre-approved parklets for approximately 19 restaurants. Three pre-approved parklet designs were presented and the standardized plans were described as a way to simplify implementation while supporting year-round outdoor dining and an enhanced pedestrian environment. Assistant Fukuji presented a public space concept for California Avenue that would replace the previously considered 2-way bicycle lane concept. The proposal uses thermoplastic striping and surface treatments to encourage slower bicycle speeds without dedicated bike lane markings. Staff consulted with the Vista Center for the Blind and Visually Impaired and incorporated accessibility features, including tactile directional indicators. The concept illustrates how outdoor dining and pre-approved parklets could be accommodated within the public space and includes consolidated bicycle parking locations, while allowing businesses to retain existing SUMMARY MINUTES Page 20 of 35 City Council Meeting Summary Minutes: 06/01/2026 bicycle parking if desired. The presentation concluded with a summary of the proposed outdoor activation standards, pre-approved parklet plans, and sign ordinance amendments. The proposed sign code changes would allow certain parklet signs and sandwich board signs without ARB review or a separate sign permit. Next steps would include a second reading of the sign ordinance anticipated in August and Council consideration of funding for California Avenue paving improvements scheduled for June 15. If approved, businesses could begin installing pre- approved parklets following completion of the paving work. Future efforts will focus on refining the public space design concept and evaluating opportunities to remove barriers that limit outdoor dining activity. Councilmember Burt expressed support for the proposed approach to bicycle circulation on California Avenue and stated that the growth of high-speed e-bikes has changed the safety considerations associated with shared bicycle and pedestrian spaces. Support was voiced for maintaining California Avenue as a bicycle destination while limiting its function as a through route and interest was expressed in improving bicycle connections along nearby routes such as Cambridge Avenue and alleyways. Councilmember Burt questioned whether repaving California Avenue was necessary and asked whether the funding could be directed toward other improvements. Assistant Fukuji explained that Public Works staff determined repaving would provide a more durable long-term solution than removing pavement markings and resealing the roadway. Manager Andrade added that the work is intended in part to improve the appearance of the corridor and would require existing outdoor dining installations to be removed and reconstructed. City Manager Shikada stated that staff would evaluate the most cost-effective approach if directed to proceed. Additional clarification was provided that repaving would cost less than removing the existing markings and resealing the street. Councilmember Lythcott-Haims echoed concerns regarding bicycle activity on California Avenue and questioned whether nearby routes such as Cambridge Avenue would be more appropriate for through bicycle traffic. Additional information was sought regarding feedback from the Vista Center and how the proposed design would accommodate visually impaired users. Assistant Fukuji explained that the Vista Center supported the car-free environment and the proposed accessibility features, including tactile directional indicators. Additional feedback included interest in design elements that would improve awareness of approaching bicycles through changes in pavement texture and sound. Councilmember Lythcott-Haims expressed appreciation for the work completed by staff. Councilmember Lythcott-Haims asked how the proposal accounts for planned housing developments along California Avenue, including projects at 414 and 156 California Avenue. Assistant Fukuji explained that the outdoor activation standards would apply to future development projects and noted that the proposal for 414 California Avenue would require modifications to accommodate emergency vehicle access and related improvements. Concerns were expressed regarding the potential increase in pedestrian activity associated with future SUMMARY MINUTES Page 21 of 35 City Council Meeting Summary Minutes: 06/01/2026 housing development. Assistant Fukuji stated that additional residents would likely contribute to activity and use of the California Avenue district. Councilmember Lythcott-Haims sought clarification regarding the colored lines shown in the east and west public space concept illustrations. Assistant Fukuji explained that the elements are thermoplastic surface treatments that can vary in width and color. Councilmember Lythcott-Haims expressed appreciation for the concept. Councilmember Lu was grateful for the work completed on the proposal and asked about the implementation schedule. Assistant Fukuji explained that the proposed paving work could occur this year, while the public space improvements would require future funding and would be implemented at a later date, potentially spring 2027. Councilmember Lu questioned the operational impacts of the bollards and emergency vehicle access on California Avenue. Fire Chief Stephen Lindsey reported that a review of recent emergency responses found no significant delays associated with the current configuration. It was explained that response strategies vary depending on the incident and that personnel may park outside the bollards and carry equipment into the area when appropriate. In response to questions about alternative bollard designs and access configurations, Fire Chief Lindsey stated that Fire Department operations are functioning effectively under the current design and that emergency vehicles can access the corridor when necessary. Councilmember Lauing requested additional information regarding merchant outreach and whether businesses had expressed interest in the proposed parklet program at the anticipated cost. Assistant Fukuji clarified that the illustrated buildout represented the maximum potential buildout and not a projection of actual participation. Monthly outreach meetings had generally attracted between 5 and 20 merchants and staff met individually with businesses upon request. Councilmember Lauing suggested evaluating merchant interest further before proceeding further with implementation. Councilmember Lauing asked whether existing parklets could be retained if they comply with the proposed standards. Assistant Fukuji explained that the standards are intended to accommodate a range of investment levels and would allow reuse of certain existing parklet elements, although some features would need to be upgraded to meet the new design requirements. Support was expressed for the inclusion of operable weather screening to provide flexibility for businesses. Councilmember Lauing asked how the proposed parklet designs account for existing gas infrastructure along California Avenue. Assistant Fukuji explained that setbacks are required adjacent to gas mains and that parklets may be located over gas laterals if appropriate shutoff valves are installed. City Manager Shikada added that staff has mapped the utility locations and incorporated those constraints into the proposed layouts. Mayor Veenker expressed support for the proposed parklet designs and agreed that additional information regarding merchant interest would be helpful. Questions were raised regarding SUMMARY MINUTES Page 22 of 35 City Council Meeting Summary Minutes: 06/01/2026 emergency vehicle access within the car-free corridor. Fire Chief Lindsey explained that Fire Department staff evaluated vehicle access, turning movements, and apparatus placement throughout the corridor and worked closely with staff to ensure adequate setbacks and emergency access routes. It was added that emergency vehicles carry keys needed to access the bollards when necessary. Mayor Veenker asked how compliance with parklet standards and clearance requirements would be monitored. City Manager Shikada explained that the outdoor activation guidelines establish expectations regarding furniture placement, design, and merchant responsibilities. Concerns were expressed that improper use of the space could create public safety issues. Manager Andrade stated that staff is coordinating with Public Works regarding enforcement and development of consistent rules for the corridor. Support was expressed for continued communication and implementation of the City's vision for California Avenue. Mayor Veenker asked whether e-bikes are currently permitted on California Avenue and whether restrictions could be considered in the future. City Manager Shikada confirmed that e- bikes are currently allowed and recommended that broader bicycle management issues be considered as a separate discussion. Mayor Veenker agreed that the topic should be addressed at a future meeting. Public Comment: 1. Charlie W., representing the Palo Alto Chamber of Commerce, expressed support for the proposed outdoor activation guidelines and thanked staff and California Avenue businesses for their work on the effort. The commenter stated that the guidelines and pre-approved parklet designs would provide businesses with greater certainty to invest in long-term outdoor dining improvements while creating a safer and more consistent experience for visitors. Support was expressed for approval of the staff recommendation. 2. Doria S. thanked the Council and staff for their work on California Avenue and stated that the car-free street has become a valued community space that supports local businesses. The commenter urged the City not to include a bicycle lane through the center of the corridor, citing concerns regarding e-bikes and impacts on families, people with disabilities, and other pedestrians. Concern was raised regarding how the proposed thermoplastic design would function and appear. Support was expressed for shifting bicycle traffic to routes such as Cambridge Avenue, which was noted as a planned bicycle corridor. 3. Berry H., owner of Gamelandia, voiced support for the proposed outdoor dining guidelines despite operating a business that would not directly benefit from them. The commenter stated that the California Avenue closure has created a more vibrant and walkable district and indicated that enhanced outdoor dining and future entertainment opportunities would strengthen the overall business environment and benefit a wide SUMMARY MINUTES Page 23 of 35 City Council Meeting Summary Minutes: 06/01/2026 range of merchants. Concerns were expressed regarding increasing e-bike activity on Cal Ave and support was expressed for exploring alternative bicycle routes other than Cambridge Avenue. 4. Todd B., a resident of California Avenue, was supportive of the proposed outdoor activation measures and stated that parklets have contributed to the success of California Avenue. The commenter encouraged the City to move more quickly toward implementation and provide businesses with certainty to make long-term investments. Support was expressed for prioritizing pedestrians over bicycle traffic, citing concerns regarding e-bike safety. The commenter encouraged continued outreach to residents in addition to businesses and expressed enthusiasm for the future of California Avenue. 5. Leland W. (Zoom) expressed opposition to the continued closure of California Avenue and urged the City to reopen the street to vehicle traffic. The commenter argued that improvements in commercial occupancy are attributable to growth in the AI sector rather than the street closure and questioned whether the project has produced the anticipated community and economic benefits. Concerns were raised regarding public expenditures associated with the project and the commenter stated that vehicle, bicycle, pedestrian, and dining activity can coexist without a permanently closed street. 6. Michael (Zoom), owner of La Bodeguita del Medio restaurant, urged the Council to reject the proposal and raised concerns regarding emergency vehicle access, response times, and the absence of a finalized long-term vision for California Avenue. Questions were raised regarding the level of business participation in the proposed parklet program and whether the project would benefit the broader business district. The commenter argued that additional funding should not be committed until outstanding planning, safety, and City budget issues are resolved and expressed opposition to the proposed bicycle improvements. Councilmember Reckdahl sought clarification regarding the range of outdoor dining configurations permitted under the proposed standards. Assistant Fukuji explained that businesses could choose from a variety of options, including parklets, café seating areas, and different types of barriers, with installations located adjacent to buildings or within the roadway. Councilmember Reckdahl stated that providing a range of cost and design options could encourage greater business participation. Councilmember Reckdahl expressed support for the pre-approved parklet designs and questioned the basis for the proposed 350-square-foot size limit, particularly for custom parklets. City Manager Shikada explained that the limit is tied to fire, building, plumbing, electrical, and other safety considerations and reflects previous Council direction intended to maximize flexibility while avoiding additional regulatory requirements. Concerns were expressed that the size restriction could limit opportunities for larger custom parklets. City Manager Shikada responded that custom proposals could still be reviewed on a case-by-case basis and emphasized that the standards are intended to balance flexibility with public safety SUMMARY MINUTES Page 24 of 35 City Council Meeting Summary Minutes: 06/01/2026 requirements. Councilmember Reckdahl referenced an alternative permitting approach used in another jurisdiction for larger parklets. Councilmember Burt expressed support for improving bicycle access to California Avenue through measures such as enhanced bicycle parking and improvements to nearby routes, including Cambridge Avenue. Support was expressed for allowing consideration of larger custom parklets and questions were raised regarding the rationale for limiting individual parklets to 350 square feet while permitting multiple parklets at a single location. City Manager Shikada reiterated that the size limit originated from prior staff recommendations based on safety and code considerations and stated that staff could revisit the issue and provide additional analysis if directed by the Council. Councilmember Burt maintained that the impacts associated with larger parklets should be evaluated based on total seating and overall use rather than the size of an individual parklet. Councilmember Burt emphasized the importance of improving alley access to California Avenue from adjacent parking areas and noted that the issue has been discussed previously without significant progress. Interest was expressed in ensuring that access improvements remain part of future planning efforts. Councilmember Lauing expressed support for prohibiting bicycle traffic on California Avenue and maintaining the corridor as a pedestrian-oriented space. Support was further voiced for improving bicycle access to the district through enhanced parking and alternative routes while directing through bicycle traffic away from California Avenue. Concerns were cited regarding pedestrian safety and conflicts between pedestrians and bicycles, particularly e-bikes. Councilmember Lauing expressed concern that the proposed enforcement and maintenance provisions lack sufficient specificity regarding compliance expectations. Preference was stated for holding businesses responsible for maintaining outdoor activation spaces and in providing clearer standards and enforcement criteria to avoid future disputes. Councilmember Lauing emphasized the importance of maintaining a long-term vision for California Avenue and asked when topics such as landscaping, signage, and lighting improvements would be considered. City Manager Shikada responded that funding is not currently available for those enhancements and that the proposal focuses on improvements that can be implemented in the near term. Basic wayfinding signage is currently being developed for key gateway locations. Councilmember Lauing suggested that funding proposed for pavement improvements could potentially be redirected toward wayfinding and questioned whether the paving work is necessary at this time. City Manager Shikada responded that revisiting the paving decision could require reconsideration of elements of the overall implementation approach. Councilmember Lu expressed interest in exploring more flexible approval pathways for custom parklet designs in the future and noted that larger, more creative parklets can contribute to a district's character. Regarding bicycle circulation, preference was voiced for the proposed SUMMARY MINUTES Page 25 of 35 City Council Meeting Summary Minutes: 06/01/2026 approach, with the observation that enforcement challenges are primarily associated with a small number of unsafe riders rather than bicycle traffic generally. Councilmember Lu stated that most cyclists use California Avenue responsibly and suggested that additional restrictions may not effectively address problematic behavior. Councilmember Lu was concerned that repaving California Avenue could establish a more permanent condition before the City determines how to achieve its longer-term vision for Cal Ave. Interest was expressed in delaying the paving work until it is necessary or until funding is available for additional improvements. City Manager Shikada noted that a future streetscape project would require funding far beyond the proposed $300,000 paving allocation. Councilmember Lu suggested exploring modest interim improvements, such as addressing pedestrian-oriented design issues and adding amenities, and reiterated support for approving the proposal while continuing to pursue a more ambitious long-term vision for California Avenue. Mayor Veenker sought clarification regarding the cost of repaving California Avenue compared with alternatives that would remove existing roadway markings without repaving. Assistant Fukuji reiterated that the costs are comparable and explained that removing the existing traffic markings would itself be a significant expense. Vice Mayor Stone moved the staff recommendation with a modification directing staff to pursue a bicycle-free design for California Avenue. Vice Mayor Stone expressed appreciation for staff's responsiveness to feedback received during discussions at the Economic Development Committee and throughout development of the proposal. Councilmember Lauing seconded the motion and encouraged staff to conduct additional outreach to assess merchant interest in the proposed parklet options and associated cost ranges. City Manager Shikada requested clarification on that instruction and Councilmember Lauing indicated that the suggestion was not intended as a modification to the motion but rather as a recommendation to help gauge business participation and support. MOTION: Vice Mayor Stone moved, seconded by Council Member Lauing, to: 1. Approve the Outdoor Activation Standards and encroachment permit requirements for the car-free portion of California Avenue as documented in Attachment A. 2. Approve the Pre-approved Parklet Plans with standardized parklet designs for California Avenue summarized in Attachment B. 3. FIRST READ: An ordinance amending the Sign Code (PAMC section 16.20.160) to allow parklet permittees to post certain types of parklet signs in compliance with the Outdoor Activation permit standards in lieu of the Sign Code’s default review process; see Attachment C. SUMMARY MINUTES Page 26 of 35 City Council Meeting Summary Minutes: 06/01/2026 4. Approve the proposed public space design concept outlined in Attachment D and direct staff to modify the design to be a bike-free design. MOTION PASSED: 6-1, Lu no [Council took a 7-minute break] 17. Receive Update and Provide Direction to Staff on the Implementation of Senate Bill 79 (SB 79) and the Work Related to the Downtown Housing Plan. Adoption of Two Temporary Ordinances Implementing SB 79, Adopting a Transit Oriented Development Combining District, Excluding Certain Sites from Government Code Section 65912.157, and Authorizing the Planning and Development Services Director to Make Corresponding Updates to the Zone Map. CEQA Status: Exempt Under Government Code section 65912.161(c)(2). Prior to consideration of the item, Councilmember Reckdahl recused himself due to the proximity of his residence to the San Antonio Caltrain station. Councilmember Lu similarly recused himself due to the proximity of his residence to the California Avenue Caltrain station. Mayor Veenker noted that a quorum remained present. Planning and Development Services Director Jonathan Lait introduced Senior Planner Vishnu Krishnan, who has been leading work on the Downtown Housing Plan and SB 79 implementation, and noted that staff would provide a shortened presentation. Senior Planner Vishnu Krishnan presented an overview of SB 79 and its implications for the Downtown Housing Plan. Background was provided regarding prior Council discussions and the work of the Council ad hoc committee. It was explained that the purpose of the item is to review SB 79 implementation options, consider temporary ordinances, and provide direction on future work related to the Downtown Housing Plan. A series of slides summarized SB 79 requirements, including transit-oriented development (TOD) standards, site exclusions, alternative planning options, and projected development capacity near the City's 3 Caltrain stations. Maps and data slides identified eligible areas, exclusion categories, acreage, and housing projections for the University Avenue, California Avenue, and San Antonio station areas. Four implementation approaches were outlined, ranging from allowing SB 79 to take effect without local action to preparing a full alternative TOD plan. Options for the Downtown Housing Plan included focusing on development standards only, completing the full plan, or discontinuing the effort. Staff and the Council ad hoc committee recommended adoption of 2 temporary ordinances: one excluding qualifying locally designated historic resources from applicable SB 79 standards through January 31, 2032, and another establishing development standards for TOD-eligible parcels at 50 percent of SB 79 standards through a TOD combining district. A slide illustrated a feasibility analysis for a TOD-eligible R1 site near the California Avenue station under the proposed 50 percent standards scenario. Proposed next steps included adoption of interim urgency ordinances, preparation of permanent ordinances for PTC review, and continued work on the Downtown Housing Plan. SUMMARY MINUTES Page 27 of 35 City Council Meeting Summary Minutes: 06/01/2026 Director Lait added that a supplemental memorandum had been released correcting attachments included with the staff report. Clarification was provided that the ordinances under consideration are temporary ordinances rather than urgency ordinances and that additional corrections were identified in the memorandum. Director Lait further noted that numerous public comments had been received and were available to the Council. Councilmember Lauing, speaking as a member of the ad hoc committee, explained that the recommendation reflects the implementation options available under SB 79 and the City's staffing and resource constraints. Support was expressed for TOD and continued advancement of housing near transit, noting that those objectives are incorporated into the City's Housing Element and Downtown Housing Plan efforts. Councilmember Lauing stated that the recommended approach would allow the City to utilize available provisions of SB 79, including preparation of a potential alternative TOD plan and protection of qualifying historic resources, while continuing work on the Downtown Housing Plan. Concerns were raised regarding the staffing and workload demands associated with implementing the Housing Element and SB 79. Clarification was provided that adoption of the proposed ordinances would not preclude future high-density housing projects or use of existing development incentive programs. Councilmember Burt observed that the implementation options under SB 79 involve significant tradeoffs and stated that the staff report provides a useful framework for evaluating those choices. Support was expressed for continuing work on the Downtown Housing Plan and for considering related planning efforts, including potential expansion of the El Camino Focus Area. Several clarifications were offered regarding the staff report, including the City's ability to exempt qualifying historic resources and prepare an alternative TOD plan. Councilmember Burt further highlighted the scale of development that could be permitted under SB 79 in lower- density neighborhoods and noted uncertainty regarding future redevelopment patterns. Additional observations were offered regarding redevelopment potential on larger parcels, including public facilities and properties adjacent to commercial corridors. Councilmember Burt concluded by expressing interest in hearing feedback from other Councilmembers regarding the ad hoc committee's recommendations. Public Comment: 1. Erica S., development manager for the project at 414 California Avenue, urged the Council to reconsider the proposed temporary ordinance, arguing that it would significantly reduce development potential for properties near single-family neighborhoods and along urban corridors. The commenter stated that mixed-use projects require sufficient residential density to support financially viable ground-floor retail and placemaking uses. Concerns were expressed that alternative entitlement pathways can be lengthy and uncertain, reducing the benefits of the streamlined development process intended under State housing laws. 2. Scott L. G., representing the ownership of 414 California Avenue, opposed the proposed ordinance and argued that it would reduce development potential along California SUMMARY MINUTES Page 28 of 35 City Council Meeting Summary Minutes: 06/01/2026 Avenue while undermining the mixed-use character the City seeks to preserve. The commenter contended that limiting residential floor area could discourage ground-floor retail by reducing the housing density needed to support financially viable mixed-use projects. Concerns were voiced regarding the ordinance's consistency with SB 79 and potential legal challenges. The Council was urged to reject the proposal and instead pursue an approach that supports transit-oriented housing development while maintaining active ground-floor commercial uses. 3. Berry H., owner of Gamelandia, expressed concerns regarding the proposed implementation of SB 79 and urged the City to exempt core commercial corridors such as California Avenue from the proposed 50 percent reduction in development standards. The commenter argued that transit-served business districts are appropriate locations for additional housing and that broad restrictions could hinder planned housing projects and weaken the long-term vitality of commercial areas. It was stated that the City can protect neighborhoods and historic resources while supporting housing growth in commercial corridors. Further concerns were raised that the proposal may be inconsistent with the City's efforts to promote housing development and qualify for state housing-related funding opportunities. 4. Triana C., a senior planner in the Land Use and Development Review Team at Santa Clara Valley Transportation Authority, stated that VTA has been closely monitoring implementation of SB 79 and participating in countywide discussions regarding the legislation. The commenter acknowledged the complexity of SB 79 implementation and noted that VTA has been providing information sharing and technical assistance related to the law. VTA's interest in continued collaboration with Palo Alto was expressed and the agency offered to serve as a resource as the City advances implementation efforts. 5. Jeff L. expressed support for the approach recommended by staff and the ad hoc committee but raised questions regarding specific provisions of the proposed ordinance. The commenter suggested that modifications to setback and daylight plane standards may be unnecessary under SB 79 and questioned why those standards were adjusted while site coverage standards were not. It was further recommended that the proposed 50 percent ordinance should establish maximum densities at one-half of the densities permitted under SB 79. 6. Chao L. (Zoom) expressed support for Palo Alto's pursuit of a Prohousing Designation and urged the Council to consider the regional housing shortage when evaluating implementation of SB 79. The commenter encouraged the City to align its approach with neighboring jurisdictions and expressed opposition to utilizing the 50 percent implementation option. 7. Scott O. (Zoom) encouraged the Council to focus on the merits of the proposed SB 79 implementation strategy. Questions were raised regarding the basis for treating the matter as an emergency given the length of time since SB 79 was enacted. The SUMMARY MINUTES Page 29 of 35 City Council Meeting Summary Minutes: 06/01/2026 commenter referenced an alternative approach proposed by Palo Alto Forward that would allow SB 79 standards to take effect in portions of the City while additional planning occurs elsewhere. Support was expressed for allowing greater density in core transit-oriented areas and concerns were raised that delaying implementation could result in less cohesive development patterns over time. 8. Michael Q. (Zoom) expressed agreement with comments regarding the legal basis for an emergency ordinance and referenced correspondence submitted by housing advocacy organizations questioning the approach. The commenter argued that previous efforts to limit state involvement in local housing decisions ultimately reduced the City's options and local control. Support was expressed for addressing SB 79 implementation openly and in good faith, with the view that such an approach would lead to better long-term outcomes and greater local flexibility. Councilmember Lythcott-Haims expressed support for the proposed exemption for historic resources and asked how adoption of the proposed 50 percent SB 79 standards would affect potential projects at 414 and 156 California Avenue. Director Lait explained that no application has been submitted for 414 California Avenue and that 156 California Avenue is proceeding through a separate Housing Element process and that the proposed ordinances would not affect those projects. Councilmember Lythcott-Haims sought clarification regarding the distinction between the temporary ordinances under consideration and the urgency ordinances proposed for June 15. Questions were raised regarding the basis for making findings necessary to support an urgency ordinance. Director Lait explained that the temporary ordinances would return for second reading on June 15 and that urgency ordinances could additionally be considered at that time if directed by the Council. It was conveyed that additional study is needed to evaluate infrastructure capacity to support future development under SB 79. Assistant City Attorney Albert Yang described the legal standards applicable to urgency ordinances and stated that concerns regarding infrastructure capacity and service demands could support such findings. Councilmember Lythcott-Haims questioned how those concerns apply in areas currently designated for higher-density development. Assistant City Attorney Yang responded that recent housing projects have required detailed evaluation of utility, stormwater, and other infrastructure capacity issues. Councilmember Lythcott-Haims expressed concern that applying the proposed 50 percent SB 79 standards citywide may not adequately distinguish between lower-density neighborhoods and areas where the City is currently pursuing higher-density development, including portions of California Avenue, El Camino Real, Downtown, and San Antonio Road. Interest was expressed in exempting those areas from the proposed reduction. Director Lait responded that the ordinance would not reduce existing development standards in areas where higher-density housing is currently encouraged and explained that the proposal would primarily increase development capacity in areas that do not currently meet the 50 percent SB 79 threshold. Planning efforts for additional housing in the Downtown area remain ongoing. SUMMARY MINUTES Page 30 of 35 City Council Meeting Summary Minutes: 06/01/2026 Councilmember Lythcott-Haims asked whether the City's pursuit of a Prohousing Designation is consistent with the proposed approach to SB 79 implementation. Director Lait stated that he does not view the 2 efforts as inconsistent, explaining that the Prohousing Designation reflects actions the City has taken and plans to take to support housing production. It was reiterated that the proposed interim approach to SB 79 would provide time to study potential impacts associated with increased development capacity, including effects on utilities, public safety services, and schools, before full implementation of the law. Director Lait emphasized that the appropriate balance between those considerations and housing production objectives is ultimately a policy decision for the Council. Vice Mayor Stone asked whether SB 79 includes affordability requirements if the City takes no action. Senior Planner Krishnan confirmed that SB 79 contains affordability requirements but noted that Palo Alto's existing affordability requirements would apply where they are more stringent. Vice Mayor Stone sought confirmation that adoption of the ad hoc committee's recommendation would not reduce existing development standards in areas where the City is currently encouraging higher-density housing, including Downtown, California Avenue, El Camino Real, and San Antonio Road. Director Lait confirmed that the proposed ordinance would only increase development capacity for sites that do not currently meet SB 79's 50 percent threshold. Vice Mayor Stone asked whether staff or the ad hoc committee considered allowing SB 79 to take effect in areas where the City has previously completed planning efforts supporting increased density. Director Lait stated that such discussions generally occurred in the context of a potential alternative TOD plan rather than specific geographic carve-outs. Councilmember Burt noted that existing development standards in areas such as the San Antonio corridor and El Camino Real are generally consistent with, and in some cases exceed, SB 79 standards. Support was expressed for using the flexibility provided under SB 79 to develop a more tailored TOD strategy while continuing work on the Downtown Housing Plan and other planning efforts. Councilmember Lauing stated that the recommendation reflects options expressly provided under State law and emphasized continued support for housing development in areas such as California Avenue. Vice Mayor Stone stated that the 50 percent implementation option appears consistent with State law and does not appear to conflict with the City's pursuit of a Prohousing Designation. Concerns were expressed about ensuring that adoption of the interim ordinance does not delay future planning efforts or consideration of additional housing capacity. Director Lait responded that planning efforts in the Downtown and San Antonio areas would continue and could potentially support development beyond SB 79 standards where appropriate. It was noted that California Avenue does not currently have an active area plan and could be studied in the future. Vice Mayor Stone expressed interest in accelerating planning efforts for California Avenue while continuing to evaluate infrastructure capacity and related constraints. SUMMARY MINUTES Page 31 of 35 City Council Meeting Summary Minutes: 06/01/2026 Director Lait additionally noted that adoption of the recommended ordinance would require the affirmative vote of 4 Councilmembers. City Attorney Christopher Jensen confirmed that requirement. Councilmember Lythcott-Haims sought additional clarification regarding how the proposed ordinance would apply in areas where existing zoning currently permits greater development intensity. Assistant City Attorney Yang, Director Lait, and City Attorney Jensen explained that the ordinance would not supersede more permissive underlying zoning standards and would only increase development capacity where existing regulations do not meet the proposed SB 79 thresholds. Staff further clarified that the proposal would generally have limited effect on existing California Avenue development standards, which are more permissive in several respects, while increasing allowable residential floor area in mixed-use projects. Mayor Veenker sought clarification regarding the duration and purpose of the proposed temporary and permanent ordinances. Director Lait explained that the City would need to complete its local planning and ordinance adoption process before 2032, after which SB 79 standards would take effect unless the City adopts an approved alternative TOD plan. Questions were raised regarding the timeline for preparing such a plan. Director Lait indicated that a TOD alternative plan would be a significant undertaking and is not anticipated in the near term given current workload and priorities. Mayor Veenker expressed support for the proposed historic resource exemption but questioned whether a uniform 50 percent implementation approach appropriately reflects differences among station areas. Concerns were raised that areas such as California Avenue may warrant a more tailored approach given existing planning objectives and development patterns. Interest was expressed in exploring modifications that would preserve the proposed framework while exempting selected corridors where the City has identified opportunities for additional housing growth. Councilmember Lauing stated that preparation of a TOD alternative plan would likely require several years and noted that the City has existing zoning and programs in place to meet its current Housing Element obligations. Councilmember Lauing distinguished implementation of SB 79 from broader discussions regarding housing growth beyond State requirements and emphasized that the Council retains the ability to consider additional upzoning in the future. Concerns were expressed about introducing location-specific exceptions to the proposed ordinance during the current discussion. Councilmember Burt emphasized that the City has undertaken significant upzoning efforts in recent years and is actively working to accommodate more than 6,000 housing units through the current Housing Element cycle. Support was expressed for the recommended approach, which was described as allowing additional development capacity while providing time to develop a more deliberate TOD planning strategy. Councilmember Burt further noted that several historic and lower-density neighborhoods fall within SB 79 station areas and expressed concern that the legislation's historic resource exemptions may not fully protect those areas. It was further stated that the City could continue to consider targeted upzoning efforts while SUMMARY MINUTES Page 32 of 35 City Council Meeting Summary Minutes: 06/01/2026 developing a TOD alternative plan. Councilmember Burt moved approval of staff recommendations 1 through 6. Councilmember Lauing seconded the motion and reiterated that the Council retains the ability to consider additional upzoning in the future if desired. Councilmember Lauing stated that, based on current projections, additional upzoning is not necessary to meet the City's Housing Element obligations. Councilmember Lythcott-Haims proposed a friendly amendment to revise language in Attachment C, Item I, to state that SB 79 would create incentives for redevelopment in TOD areas "that the City has not already identified as being suitable locations for higher-density development" and could allow densities that create unanticipated infrastructure demands. City Attorney Jensen and Assistant City Attorney Yang indicated that the proposed revision presented no legal concerns. Councilmember Burt and Councilmember Lauing accepted the amendment. Councilmember Lythcott-Haims proposed a second amendment to the TOD Combining District ordinance that would exempt the Downtown Housing Plan Assessment Area, California Avenue, portions of El Camino Real, San Antonio Road, and several other identified corridors and streets. The amendment would apply the district to all TOD sites except specified locations, including "sites with frontages on Cal Ave between El Camino and Caltrain" and "sites with frontages on El Camino." Councilmember Burt opposed the amendment, stating that it would introduce significant zoning changes without the analysis, public review, and evaluation of infrastructure, transportation, and compatibility impacts that accompanied previous upzoning efforts in areas such as the El Camino Real and San Antonio corridors. Councilmember Lauing agreed that the proposed exemptions could be considered through a separate future process and noted that broader Council participation would be possible outside the constraints of the current item. Councilmember Lythcott-Haims stated that the intent was to allow SB 79 to proceed in regions of the City that have largely been planned to be higher density while preserving the proposed 50 percent reduction in areas the City is seeking to protect. It was further stated that the amendment would make the City's approach more explicit by identifying where the 50 percent reduction would and would not apply. Mayor Veenker expressed interest in exempting selected corridors, including California Avenue, El Camino Real, and San Antonio Road, from the proposed 50 percent TOD standards, stating that those areas are generally consistent with the City's housing planning objectives and could demonstrate continued support for housing production. Councilmember Burt reiterated concerns that modifying the proposal during the meeting could have unintended effects on existing and future development projects and that additional analysis would be appropriate before making such changes. Councilmember Lauing questioned the need to consider additional upzoning immediately, noting that the City has planned for substantial housing growth and that a broader discussion could occur in the future with full Council participation. A discussion followed regarding the timing of potential future upzoning efforts. Mayor Veenker expressed concern that deferring consideration could delay implementation for several years, SUMMARY MINUTES Page 33 of 35 City Council Meeting Summary Minutes: 06/01/2026 while Councilmember Lauing stated that additional upzoning could be considered on a future timeline following further analysis and Council discussion. City Manager Shikada suggested that staff provide input regarding potential next steps and opportunities for future discussion. Director Lait noted that the proposed ordinance would return to the Council for second reading on June 15 and that a permanent ordinance would subsequently be reviewed through the PTC and Council process. It was conveyed that the ideas discussed by the Council regarding potential corridor-specific exemptions could be incorporated into that future review and evaluated through a public process with PTC input. It was estimated that such a discussion could occur within approximately 6 to 12 months, depending on staff workload and scheduling priorities. Vice Mayor Stone expressed support for the timeline outlined by staff and stated that the proposed corridor-specific exemptions would represent a significant departure from the recommendation under consideration. Concerns were expressed about making such changes without additional public review and broader Council participation. Support was expressed for continuing the discussion through the PTC and Council process over the next 6 to 12 months, with additional opportunities for public input. Mayor Veenker asked whether future discussions regarding potential TOD exemptions would continue to be affected by Councilmember recusal requirements. City Attorney Jensen stated that one Councilmember has sought advice from the FPPC regarding potential participation in future discussions and noted that there may be opportunities to structure future discussions in a way that allows broader Council participation. Questions were raised regarding whether separate consideration of specific geographic areas could affect conflict determinations. City Attorney Jensen responded that participation would depend on the properties affected by a proposal rather than whether the action is considered as part of SB 79 implementation or a separate zoning amendment. Councilmember Burt stated that the City is likely to consider additional targeted upzoning efforts before completion of a broader TOD alternative plan, including areas under study through the Downtown Housing Plan and potentially other focus areas. Support was expressed for the approach outlined by Director Lait, which would allow consideration of corridor-specific upzoning through a future planning process. Councilmember Lythcott-Haims asked whether that concept could be incorporated into the motion. Director Lait and staff assisted the Council in refining the motion language accordingly. Mayor Veenker expressed interest in prioritizing consideration of California Avenue and asked whether staff anticipated evaluating all of the discussed corridors together. Director Lait responded that staff could present the identified corridors to the PTC with analysis and recommendations regarding which areas may be appropriate for additional housing capacity and which may warrant further caution. It was stated that the resulting recommendation to the Council would not be an all-or-nothing proposal and could identify specific areas for advancement. SUMMARY MINUTES Page 34 of 35 City Council Meeting Summary Minutes: 06/01/2026 Councilmember Lythcott-Haims reiterated support for exempting California Avenue from the proposed 50 percent TOD standards, stating that the corridor is the type of transit-served area where the State intends to encourage additional housing. Mayor Veenker expressed support for that concept. Councilmember Burt repeated his opposition to exempt California Avenue from the proposed 50 percent TOD standards at the meeting, stating that changes of that magnitude would normally be evaluated through a public planning process with PTC review and community input. Concerns were expressed that the potential implications of allowing substantially greater development intensity had not been adequately evaluated and that additional analysis should occur before considering such changes. Mayor Veenker stated that the Council was attempting to develop a thoughtful approach to SB 79 implementation rather than allowing the law to take effect without local action. Councilmember Lythcott-Haims stated that the intent was not to reject the proposal but to ensure that areas appropriate for additional housing receive further consideration. Councilmember Burt proposed amending the motion to direct future review of potential TOD modifications "with a particular focus to the California Avenue area." Councilmember Lythcott- Haims and Councilmember Lauing expressed support for that wording. Councilmember Lythcott-Haims asked whether the motion could additionally direct consideration of a potential extension of the El Camino Focus Area toward California Avenue as part of future PTC review. Councilmember Burt expressed support for including that concept. Councilmember Lauing questioned the need for additional specificity but indicated that he would not oppose the amendment. Mayor Veenker proposed adding language to the motion clarifying that California Avenue and the El Camino Real corridor were being specifically identified because they have been discussed by the Council as appropriate locations for additional higher-density housing. Councilmember Burt and Councilmember Lauing agreed to the amendment. MOTION: Councilmember Burt moved, seconded by Councilmember Lauing, to: 1. Receive an update on the approaches for the implementation of Senate Bill (SB) 79 (2025) and work related to the Downtown Housing Plan; 2. Introduce a temporary ordinance (Attachment B) excluding historic resources designated on the City’s local register as of January 1, 2025, from the development standards otherwise applicable under SB 79, through one year following adoption of the City’s 7th Housing Element; 3. Introduce a temporary ordinance (Attachment C) establishing development standards for all transit-oriented development (TOD) eligible parcels subject to SB 79 at 50 percent of the otherwise allowable development capacity authorized under State law, and SUMMARY MINUTES Page 35 of 35 City Council Meeting Summary Minutes: 06/01/2026 simultaneously exempting those properties from default SB 79 standards through one year following adoption of the City’s 7th Cycle Housing Element; a. Amend Attachment C, Section 1 Findings & Declarations, Section I: “The City Council finds and declares that the implementation of Government Code section 65912.157 on July 1, 2026 will create significant incentive for redevelopment of properties in the TOD zones that the City has not already identified as being suitable locations for higher-density development, allow at densities that would create unanticipated strain on public infrastructure and cause additional points of conflict between vehicles and bicycles or pedestrians in the effected areas. The rezoning and exclusion actions set forth in this ordinance would reduce these impacts for a temporary period, during which the City may plan for increased demands on infrastructure and transportation resources. Accordingly, this ordinance is necessary as an emergency measure pursuant to PAMC section 2.04.270 to preserve the public peace, health, or safety.” 4. Direct staff to return with interim urgency versions of the above ordinances to be introduced and adopted on June 15, 2026, when the above ordinances are agendized for second reading. 5. Direct staff to prepare permanent ordinances to be presented to the Planning and Transportation Commission, incorporating the provisions of the interim ordinances and any additional provisions necessary and beneficial in implementation of SB 79. 6. Direct staff to continue work to advance and complete the Downtown Housing Plan and amend the scope of work as appropriate to take into consideration implementation of SB 79. 7. Direct staff to consider the recommendations outlined in the Palo Alto Forward Letter with particular focus to the California Avenue area including El Camino Real vicinity of California Avenue that Council has identified as suitable for higher-density development, when developing the permanent ordinance for review by the Planning & Transportation Commission, and to return to Council within 6 to 12 months. MOTION PASSED: 5-0-2, Lu and Reckdahl recused AMENDMENTS INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER Adjournment: The meeting was adjourned at 12:19 a.m.